The UK continues to be a trailblazer when it comes to p2p lending. Zopa, the market leader in the UK,...
There is big news out of the UK today. In his annual budget, Chancellor of the Exchequer (the equivalent of...
According to the Liberum AltFi Volume Index, September 2016 originations for online lenders hit £364m in the UK. September was...
RateSetter's Provision Fund is a capital reserve that helps ensure investors get paid principal and interest even if loans default; currently the fund is valued at £22 million; with the company projecting future losses via default of £18 million, the "Provision Fund coverage" ratio is roughly 120%; now, the firm has begun publishing a "capital coverage ratio" that combines the reserve funds with the expected interest payments on the loans, then divides by expected losses; with £30 million in interest payments expected, added to the £22 million reserves, the capital coverage ratio is nearly 3x; RateSetter said the newly published ratio is more fair when comparing RateSetter's assurances against other online lenders that don't hold a reserve fund but that still calculate coverage of potential losses. Source
RateSetter has hired Michael Hoare from PayPal as its new head of risk analytics and retail credit; Hoare was previously the chief credit risk officer at PayPal UK and also has experience at Capital One; Hoare and the risk management team will report to RateSetter's risk committee chairman as the company continues to build its risk team following the departure of Chief Risk Officer Cyrille Sallé de Chou who left RateSetter after six months for a chief risk officer role within HSBC's European retail business. Source
After LendIt USA 2015 I took a two-week trip back to my home town of Sydney, Australia. This was primarily...
If you look more broadly than marketplace lending and look at what is happening across the fintech world, you see large amounts...
P2P-Banking has released its monthly report on loan originations; Funding Circle led originations for the month at 106.1 million euros, also reporting a new monthly high; Zopa and Ratesetter also topped the list; Zopa reported monthly loan originations of 85.3 million euros and Ratesetter had loan originations of 63.9 million euros. Source
One of the top three P2P platforms in the UK loses their new chief risk officer only six months after he was initially hired; Cyrille Salle de Chou, who initially came from Lloyd's Banking Group, is now headed to HSBC to be the chief risk officer of their European retail business; Salle de Chou told the Financial Times: "[It is] a great opportunity I could not refuse. Not a sign of concerns re RateSetter. I thoroughly enjoyed my time at RateSetter." Source
RateSetter has sold non-performing debt to debt purchaser 1st Credit; source says the sale was for 2.1 million British pounds ($2.6 million) of non-performing loans originated between 2010 and 2015; the sale goes beyond the company's standard plans for default collection and coverage which include support from one of the industry's most well-known provision funds; the RateSetter Provision Fund promises to cover defaults for borrowers and is valued at approximately 22 million British pounds ($27.2 million); with expected losses of approximately 19 million British pounds ($23.5 million) it currently has a coverage ratio of 118%. Source